House prices in some of Australia’s more popular school catchment areas have soared by as much as 46% over the past 12 months.
Parents are paying a premium for homes in locations that make their children eligible for enrolment in high-performing or popular government schools according to the 2021 School Zone Report by Domain Group.
Domain’s chief of research Nicola Powell said the pandemic had helped supercharge school catchment prices with flexible working allowing young families to relocate to suburbs with easy access to beaches, parks and schools.
“It’s astonishing to see that starting on a high base of house prices, one-in-10 school catchment zones are achieving 10 to 20 per cent more than the suburb they are located in,” Powell said.
We know that as part of the property decision-making process, parents and investors consider the geographical location of a potential property in relation to a school catchment zone.
When people are looking for a home, they’re looking for a lifestyle, and education is a big part of that picture, be it in the inner-city suburbs or the coastal regions of Australia.”
Demand in these school zone hotspots have skyrocketed as both property buyers and investors look to take advantage of climbing property prices in sought-after areas.
And there is even a mix of suburbs which made the list – from ritzy millionaire suburbs to the more affordable pockets in our cities most sought after areas.
Australia’s top 10 primary school zones for house price growth
Burraneer Bay Public School
Newport Public School
West End State School
Woy Woy Public School
Richmond Primary School
Kimberley Park State School
Kellyville Ridge Public School
Harbord Public School
Kincumber Public School
Heidelberg Primary School
Australia’s top 10 secondary school zones for house price growth
School catchment areas have a huge influence on property prices
While sea views, idyllic streets and open spaces are sought after characteristics for home buyers and investors, school catchment areas are increasingly becoming an important factor when deciding where to purchase a new property.
The fact Domain’s report shows top 10 areas with median house prices spanning a variety of values, and spread across all of Australia’s major cities, shows how important education is for buyers shopping at all price points.
The data suggests certain school zone boundaries can have a significantly positive effect on house prices.
Sydney school catchment zones that have had the greatest annual house price growth
Domain data suggests that Sydney school catchment zones can influence house price movement, and secondary schools have a slightly bigger impact.
“Secondary school catchment zones in Sydney had a bigger influence on house prices than primary school catchment zones, a reverse trend compared to last year, indicating private school fees have weighed on household budgets at a time of escalating house prices, weak wages growth and economic uncertainty of the past year,” commented Dr Nicola Powell.
Melbourne school zones that have had the greatest annual house price growth
“Public school zones can influence property decisions and impact house price movement.
Like Sydney, secondary school zones in Melbourne appear to have had a slightly bigger impact compared to primary school zones.
This trend has reversed compared to last year, indicating at a time of escalating house prices Melbournians could be facing financial hurdles when looking to invest in particular school zones,” said Dr Nicola Powell.
Brisbane school catchments that have had the greatest annual house price growth
And it’s much the same in Brisbane where the boundary of a public school catchment is often a critical factor when it comes to purchasing a family home.
In Brisbane, secondary school catchments also appear to have a more positive impact on house price growth compared to primary school catchments.
“School catchment zones are paramount for parents when it comes to purchasing a family home.
In Brisbane, secondary school catchments zones appear to have a more positive impact on house price growth, as a larger portion are outpacing the suburb, they are in.
While the top school catchments were dotted across Greater Brisbane and a variety of different price points, affordable outer locations dominated the list,” commented Dr Nicola Powell.
Adelaide school catchment areas that have had the greatest annual house price growth
“School catchment areas can have a positive impact on house prices and this begins with primary education choice for families in Adelaide.
Some school catchment areas in the same suburb or postcode varied in the pace of price movement, highlighting the effect particular school catchment areas can have on property prices,” commented Dr Nicola Powell.
Perth school intake areas that have had the greatest annual house price growth
“We saw that in Perth, house price growth vastly varied with neighbouring local school intake areas providing contrasting outcomes for homeowners.
Some school intake areas in the same postcode or suburb varied in the pace or direction of price movement,” commented Dr. Nicola Powell.
Hobart school local intake areas that have had the greatest annual house price growth
“Hobart has recorded soaring house prices in recent years. Unsurprisingly, all of the primary and secondary school intake areas analysed recorded positive annual house price growth,” commented Dr. Nicola Powell.
Canberra school priority enrolment area that have had the greatest annual house price growth
“There were nine primary and two secondary school priority enrolment areas that have outperformed the suburb price growth, with Belconnen and Tuggeranong weighing heavily in this list, two districts that are renowned for offering affordable houses.
Families vying to get into certain schools will find that house prices have climbed at a greater rate than the suburb they’re located in, suggesting the positive influence enrolment areas have had on house price growth,” commented Dr. Nicola Powell.
Darwin school priority enrolment area that have had the greatest annual average house price growth
“Darwin house prices have made a strong recovery reaching the highest point in four years.
This includes tremendous performance across school priority enrolment areas, with 88% of primary and all secondary priority enrolment areas analysed seeing house prices rise over the past year,” commented Dr Nicola Powell.
A full list of Domain Group’s 2021 School Zones Report for each capital city across Australia can be accessed here.